Question: 8. Different industries have different levels of returns. This problem works to compare industries to each other, including gross margin, net profit margin, and R&D
8. Different industries have different levels of returns. This problem works to compare industries to each other, including gross margin, net profit margin, and R&D expenditures as a percentage of total sales. Download the Margin data set from Connect or Additional Student Resources. (Source: https://pages.stern.nyu.edu/~adamodar/.)
Required 1. Calculate the highest net margin (net profit margin) for all industries.
2. Which industry had the highest gross margin? The lowest gross margin? How can you explain the industry with the highest gross margin? (Hint: What would be considered in cost of goods sold?)
3. Which industry spent the most on R&D expenditures as a percentage of sales? Is it what you expected? Explain.
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